Store Owner Among Those Indicted In Food Stamp Fraud Case

Store Owner Among Those Indicted In Food Stamp Fraud Case

Five people have been indicted for their role in a food stamp fraud case and drug distribution in West Baltimore.

The Baltimore State's Attorney's Office says Charles Yang has been indicted for conspiring to steal more than $100-thousand from the federal government. According to the indictment Yang would ring up fake purchases from customers using food stamps and then split the government money with them 50-50.

State's Attorney Gregg Bernstein tells WBAL Radio that in many instances the customers would go out the back door and use the cash to buy drugs.

The operation allegedly ran from 2011 through this year at the International Market in the 3700 block of West Belvedere Avenue.

Yang's daughter, Jane who was the store's owner is also charged with conspiring to steal government funds over three years. Bernstein says she held the Supplemental Nutrition Assistance Program license. She has agreed to close the store as part of her pre-trial supervision.

An employee of the store identified as Anthony Holman is charged with conspiring to sell heroin. Two others were indicted but have not been taken into custody.

Last week police arrested 11 of 16 people indicted in connection with drug crimes in the same area of the city.

During warrants police say they found heroin, cocaine, marijuana, a gun and cash.

Read more from the Baltimore City State's Attorney's Office.

For their respective roles in an alleged food stamp fraud scheme and illegal drug distribution operation at a retail store in Northwest Baltimore, five people were arrested last week, the U.S. Department of Agriculture–Office of Inspector General/Investigations, the Baltimore Police Department, and the Baltimore State’s Attorney’s Office announced. Heroin, cocaine, marijuana, packaging material, $129,000, and a rifle were recovered during the execution of the search and seizure warrants.

From 2011 through 2014, Charles Yang, the general manager of the International Market in the 3700 block of West Belvedere Avenue, illegally provided cash to individuals who came to his store and used their Supplemental Nutrition Assistance Program (SNAP) benefits cards, according to the indictment returned by the Baltimore Grand Jury. He allegedly did so by claiming fictitious grocery purchases by patrons and distributing in cash the total amount of the fake sales to himself and to the SNAP beneficiary, typically dividing the sum 50-50. The federal government then reimbursed the store for the benefits, believing it had provided food as designed under the SNAP system.

The USDA estimates that between $1,242,570 and $1,964,661 of the total $2,333,767 of SNAP benefits redeemed between 2011 and 2014 were done under fraudulent pretenses, according to the indictment.

During the course of its work on the case, the USDA also discovered evidence that the International Market also was being used as an illegal drug distribution hub and partnered with the Baltimore Police Department to continue the investigation.

Charles Yang is charged with both conspiring to steal more than $100,000 during a three-year period and conspiring to distribute cocaine and heroin.

Charles Yang’s daughter, Jane Yang, is charged with conspiring to steal more than $100,000 during a three-year period. The owner of the International Market and the SNAP license holder, Jane Yang agreed today to close the store as part of her pre-trial supervision.

Anthony Holman, an employee at the market, is charged with conspiring to sell heroin.

Two others were indicted, but they have not yet been detained. During the execution of the warrants, authorities made two on-view arrests, charging Errol Carthy with possession with intent to distribute heroin and Travis Von Hendricks with possessing marijuana.

One week earlier, Baltimore Police arrested 11 of the 16 defendants indicted for their involvement with two separate drug conspiracies operating in the same Belvedere Corridor of Northwest Baltimore, a four-block area that has seen 16 homicides and 17 non-fatal shootings since 2010. The takedown also resulted in an additional eight arrests. Five of the indicted defendants are at large.

"The Supplemental Nutrition Assistance Program was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of SNAP and other USDA programs will be aggressively pursued by our office. Our joint investigation with our Baltimore, MD law enforcement partners and the Baltimore City State’s Attorney Office has brought to justice those who sought to profit from the SNAP program through illegal schemes, in addition to uncovering an illegal drug distribution operation. The USDA Office of Inspector General will continue to dedicate resources and work with our state and local law enforcement partners in order to protect the integrity of these programs and to prosecute those who commit fraud," USDA Office of Inspector General, Special Agent-in-Charge William G. Squires Jr. stated.

"By conducting collaborative and strategic investigations such as these, we are fighting to eliminate the drug distribution operations that are so frequently associated with violence on our streets and in our neighborhoods," Police Commissioner Anthony W. Batts said.

"Organized drug operators routinely resort to violence to protect and advance their illegal businesses, putting everyone in their vicinity in harm’s way. In the Belvedere area, we are working strategically to put all of the operators out of business so residents can enjoy their neighborhood in the safety they deserve," State’s Attorney Gregg L. Bernstein said.

An indictment is not a finding of guilt. Individuals charged by indictment are presumed innocent unless and until proven guilty.